Global macro investing provides unique uncorrelated return opportunities within a diversified portfolio. This blog focuses on current economic and finance issues, changes in the market structure and the hedge fund industry as well as how to be a better disciplined decision-maker in the global macro / managed futures space.

Monday, January 16, 2012

Refiners follow global growth

Oil refiners are still a local business. If there is a slowdown in the OECD growth rates, there will be increases in idle capacity. All of the new capacity growth will be in the emerging markets to meet their demand. The rationalization of refining market will lead to future volatility if there is an increase in growth. Unlike crude, it is harder to move refined products around the globe especially if margins are weak. The movement of product means that there can be increasing volatility as shortages or bottle-necks will create price spikes.

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About Me

Mark has over 25 years of market experience on both the buy and sell side of the markets. He was formerly a professor of finance with a focus on futures, options, and speculative markets. He is looking to engage in a dialogue on global economic and finance issues to enhance our understanding of markets.